Our DailyMarket Reports

Mid-Day Gold & Silver Market Report – 6/17/2013

6/17/2013 12:06:50 PM By: Ted Prince

FOMC ANTICIPATION WEIGHS ON GOLD, BOOSTS STOCKS

The Gold price has fallen lower Monday as positions waver ahead of the U.S. Federal Reserve’s Federal Open Market Committee (FOMC) meeting. Recent speculation that the Fed will begin to reduce the scale of monetary stimulus has pulled Gold down. The program was formerly an integral motivator in driving Precious Metals prices higher. Though certain Fed officials have not been shy in expressing their desire to begin tapering the $85 billion in monthly bond purchases, many analysts are still being vocal in their opposition to the reduction. “The Fed quitting its stimulus programs might be feasible if the economy were truly on a massive recovery and inflation were rising,” Springer Financial Advisors President Keith Springer said. “However, tame inflation and lower global growth estimates from the International Monetary Fund indicate the world’s central banks won’t pull back anytime soon.”

Following a week that saw equities drop more than 1 percent, stocks are gaining abruptly today ahead of expectations for the outcome of this week’s FOMC meeting. Over the last few years, investors and traders alike remain intently focused each time Fed Chairman Ben Bernanke is set to discuss the Fed’s assessment of the economy and its strategy going forward. Regarding this week’s Fed meeting, Daiwa Capital Markets’s Chris Scicluna wrote, “While policy is obviously widely expected to be left unchanged at this meeting, all eyes will turn to the post-meeting press conference where Bernanke will unveil the Fed's latest economic projections — relevant for the timing of the first rate hike — and hopefully provide greater clarity on the likely time frame for tapering asset purchases.”

At 1:04 p.m. (EDT), the APMEX Precious Metals spot prices were:

Gold, $1,385.30, Down $4.30.

Silver, $21.89, Down $0.18.

Platinum, $1,436.00, Down $12.90.

Palladium, $716.50, Down $15.20.

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Disclaimer:
APMEX’s ‘Market Reports’ provide our readers with a review of spot price activity and some of the factors that may be affecting the market for precious metals, three times during the trading day. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The "News and Commentaries" are not intended as a comprehensive discussion and there may be other factors that may be affecting the financial marketplace. These "News and Commentaries" are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, to purchase or to sell any precious metal product. All orders, all purchases and all sales, if any, are subject to the terms of the User Agreement and other applicable policies.